Metal One Targets 77% Higher Scrap Trading in 3-Year

Metal One Corporation targets to increase the group’s trading volume of ferrous scrap and scrap substitute to annual 10 million tonnes in fiscal 2013 ending March 2014, which is around 77% higher than fiscal 2009 level. The firm tries to expand the gathering network including expansion of the scrap yards. The firm also tries to expand the business activity to offshore market by utilizing the advantage of the domestic business model.

The scrap trading volume decreased by 20% to around 5 million tonnes in fiscal 2009 from fiscal 2008 due to heavy production cut by domestic electric furnace steel makers. The international trading was around 450,000 tonnes as fiscal 2008. The firm plans to trade around 5.8 million tonnes of scrap in fiscal 2010 when domestic raw steel output recovers. The firm tries to increase the trading when the demand of scrap and scrap substitute increases worldwide targeting annual 10 million tonnes level in fiscal 2013.

The firm increases the supply ability to domestic makers by expanding the capacity of gathering and supply. The group company of Metal One Structural & Resource Corporation already launched 6th scrap stock yard in Kawasaki in June.

The firm started contract based scrap supply with domestic major scrap dealers and domestic electric furnaces steel makers. The firm expands the supply and purchase network to increase the trading. The firm tries to increase the international trading including trading between foreign countries while the firm’s main target is still domestic market.

The firm tries to build electric furnace steel value model in offshore market as domestic model. The firm sent a trader to China at long term business trip base earlier the year while the firm sent a resident trader for scrap and scrap substitute to Thailand in August. The firm plans to increase the manpower for scrap trading in mid-term. The firm tries to build network from scrap purchase in local market to scrap supply for local steel makers in foreign countries as domestic model. With the wider activity, the firm expects larger transaction base for steel products.